The Confederacy's task was to increase the tax-free amount to at least PLN 60 thousand, but the Civic Coalition applied for its rejection at first reading. KO politicians say the proposal contains method errors and is besides costly. Meanwhile, the government itself, which promised a akin solution, now explains that it cannot afford to implement this reform.
The Confederation wants PLN 60 1000 free amount – KO says no
The Confederate submitted a bill which proposed to increase the tax-free amount to 12 times the minimum wage, i.e. no little than PLN 60 thousand. It presently amounts to PLN 30 thousand. This proposal was to be fulfilled by the pre-election promises of the Civic Coalition, which declared a akin solution during the campaign.
MP Przemysław Wipler recalled that KO politicians, including Donald Tusk and Isabella Lestin, promised to rise the free amount. Now, however, alternatively than supporting the initiative, the KOs have requested that it be rejected. MP Katarzyna Kierzek-Koperska stated that the task contains errors and cannot be dealt with.
Cost of improvement or excuse?
One of the main arguments of the government against raising the free amount is the cost of the reform, which according to the Deputy Finance Minister Jarosław Neneman would be PLN 56 billion per year. He stressed that the state could not afford this in the face of advanced defence and military spending.
Meanwhile, the Confederation points out that akin solutions work in another countries and are beneficial to the economy. Wipler recalled that the minimum wage in Poland is constantly increasing, which means that more people fall into higher taxation thresholds. In his opinion, the government should focus on real taxation cuts alternatively than making excuses.
Read more: Cadastral tax. IMF recommends its introduction
Poles want lower taxes, but the government waits
Both the Law and Republicans supported the Confederacy project, while Poland 2050-TD opposed fresh solutions. The final decision will be taken on 20 or 21 February erstwhile the Sejm takes a vote on a proposal by the GO to reject the draft.
Does the government truly plan to rise the tax-free amount, or was it just an electoral promise? For now, it seems that alternatively of reducing taxes, Poles will be given further translations about the "difficult financial situation".
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